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BRITISH CALEDONIAN GROUP ANNOUNCES BIG LOSSES
| <British Caledonian Group>, Britain's
second largest airline, has announced a 19.3 mln stg pretax
loss for the financial year ending last October, compared with
a record pre-tax profit of 21.7 mln stg in 1985, chairman Sir
Adam Thomson told reporters.
A decline in U.S. Transatlantic traffic following terrorist
attacks in Europe, the U.S. Bombing of the Libya, the Chernobyl
disaster and a slump in the oil industry which affected Middle
East traffic were the main causes of the loss, Thomson said.
He said the poor results were caused by "a range of
exceptional circumstances wholly outside our direct control" and
predicted a return to profitability this year.
Last year, the airline was forced to axe 1,000 jobs, sell
some of its assets and cut the number of its flights across the
Atlantic and to the Middle East following the fall in business
.
| Financial Reports |
FED ADDS RESERVES VIA CUSTOMER REPURCHASES
| The Federal Reserve entered the U.S.
Government securities market to arrange 1.5 billion dlrs of
customer repurchase agreements, a Fed spokesman said.
Dealers said Federal funds were trading at 6-1/4 pct when
the Fed began its temporary and indirect supply of reserves to
the banking system.
| Commodities and Trade |
HAPAG ORDERS NEW CONTAINER SHIP FROM CHINA
| <Hapag Lloyd AG> said it ordered a new
container vessel from China for its Australia service.
The order was given to the <Hudong shipyards> in Shanghai
after lengthy negotiations with West German shipbuilders, the
company said in a statement.
The Chinese firm offered to build the vessel at over 30 mln
marks less than West German yards, despite government subsidies
which Bonn pays its ailing shipbuilding industry, Hapag said. A
company spokesman would not comment on the total order value
but said the new vessel would replace the 33,333 dwt Sydney
Express in 1989 and would carry 2,700 container units.
| Financial Reports |
FRENCH CGE UNIT TAKES 34 PCT STAKE IN ESCA CORP
| State-owned <Cie Generale
d'Electricite>'s electrical contracting unit <CGEE ALSTHOM> has
taken a 34 stake in the U.S. Computer firm <ESCA Corp>, CGEE
ALSTHOM chairman Philippe Boisseau told a press conference.
According to an agreement in principle between the two
companies CGEE ALSTHOM could take a majority stake in the
future but no time-scale has been set, he added.
ESCA, which had a turnover of 13.6 mln dlrs in 1986 and is
expected to see this rise to 20 mln this year, is one of the
leading U.S. Suppliers of electric despatching and telecontrol
systems.
| Financial Reports |
PARTNERS CALL GENCORP <GY> RESPONSE UNPRODUCTIVE
| General Acquisition Co said it was
disappointed by Gencorp's response to its tender offer and
asked how the company might give better value to shareholders.
Gencorp had earlier urged shareholders to reject a 100 dlr
per share tender offer from General Acquisition, an affiliate
of Wagner and Brown and AFG Industries Inc, and said it was
studying financially superior alternatives.
The General Acquisition partnership called the response
inflammatory and unproductive, particularly since it had tried
to discuss the offer with Gencorp.
The partnership said Gencorp failed to say how it would
provide a "superior value yet they continue their attempt to
prevent a satisfactory offer by failing to redeem their poison
pill." Poison pills are shareholder rights plans that make
takeovers more expensive.
Gencorp said in its statement earlier that it planned to
put off the date its rights will trade separately from the
common stock to April 6 from April 3. It said the extension was
subject to further extensions by the board and is conditional
on no person acquiring beneficial ownership of 20 pct or more
of Gencorp before April 6.
General Acquisition said it is confident its offer can be
completed in a timely manner using its financial arrangements.
The partnership in its statement again urged Gencorp
management to work with it to facilitate a transaction.
| Financial Reports |
U.S. MAY DROP TARIFFS IF JAPAN OPENS - YEUTTER
| The U.S. Is willing to drop tariffs on
Japanese electronic imports if Japan shows it will abide by an
agreemement opening its markets to American goods, U.S. Trade
Representative Clayton Yeutter said in a TV interview.
"But there has to be a clear indication that they are
willing to act," he said.
Yeutter said difficulties in the Japanese economy caused by
the U.S. Tariffs and the yen's rise against the dollar are
problems "they have brought on themselves."
The dollar fell to 40-year lows against the yen today.
"Certainly the movement of the yen is causing some economic
turmoil in Japan," he said. "My only response is that we have
gone through about five years with the dollar going in just the
opposite direction. Although I can sympathise, it's occurred
for only a few weeks or months in Japan."
The tarriffs, announced on Friday by President Reagan, will
affect about 300 million dlrs worth of products, only a tiny
fraction of Japan's total exports to the U.S.
Even so, Reagan's decision "doesn't give us any joy. We
don't want to take retaliatory action here if we don't have to,"
Yeutter said.
Yeutter said the meetings scheduled next month in
Washington between Reagan and Prime Minister Yasuhiro Nakasone
will include "some difficult items on the agenda."
Japan has failed to implement two parts of a three-part
semiconductor agreement, Yeutter said.
Japan has stopped dumping chips in the U.S. But it has
failed to open its domestic markets to U.S.-made chips and has
failed to end predatory pricing in Third World countries,
undercutting U.S. Products, he said.
| Financial Reports |
SEDGWICK BUYS BSI INCORP
| Sedgwick Group Plc <SDWK.L> said its
wholly-owned Canadian subsidiary Sedgwick Tomenson Inc had
acquired BSi Incorp for a maximum eight mln Canadian dlrs.
The funds will be raised through the issue of up to 1.16
mln ordinary Sedgwick shares to the vendors of BSi by no later
than 31 January 1991. Some 427,054 shares already have been
issued.
BSi is a privately-held Canadian company involved in
actuarial, employee and executive benefits consulting and
administration. Its 1986 pretax profits excluding extraordinary
items totalled 1.14 mln Canadian dlrs.
| Other |
U.K. MONEY MARKET SHORTAGE FORECAST REVISED UP
| The Bank of England said it had revised
its estimate of the deficit in the money market today up to a
record two billion stg, before taking account of its morning
operations, from 1.85 billion at midday.
The Bank has provided the system with around 1.71 billion
stg assistance so far today.
| Financial Reports |
REXNORD <REX> SELLS UNIT TO NEOAX <NOAX>
| Rexnord Inc, 96 pct owned by Banner
Industries Inc <BNR> following a recent tender offer, said it
has completed the sale of its Fairfield Manufacturing Co
subsidiary to NEOAX Inc for 70.5 mln dlrs in cash.
Rexnord said it still plans to sell its Process Machinery
Division and Mathews Conveyor Co as part of its planned program
to divest five businesses with 200 mln dlrs in assets.
Bellofram Corp and Railway Maintenance Equipment Co have
already been sold.
| Financial Reports |
U.S. LEADING INDICATORS ROSE 0.7 PCT IN FEB AFTER REVISED 0.5 PCT JAN FALL
|
U.S. LEADING INDICATORS ROSE 0.7 PCT IN FEB AFTER REVISED 0.5 PCT JAN FALL
| Financial Reports |
JAPAN WILL ASK COMPANIES TO BOOST IMPORTS
| Japan's Minister of International Trade
and Industry, Hajime Tamura, will meet representatives from 151
of the nation's largest companies next week and appeal to them
to do their best to increase imports, ministry officials said.
The meeting was unveiled as part of a plan to boost imports
and help head off protectionist legislation in the U.S.
Senior officials from the Ministry of International Trade
and Industry told reporters that such personal appeals appeared
to have paid off in the past, as Japanese imports of
manufactured goods have climbed.
Leading domestic semiconductor makers will boost imports
and cut production of key memory microchips next month in an
attempt to help ward off U.S. Trade sanctions, company
spokesmen said.
The officials also said they expect the government's new
trade insurance law to boost imports and encourage Japanese
companies to set up production facilities overseas.
Under the new law, the government will insure Japanese
companies who pre-pay for imports against loss arising from
everything from war to bankruptcy of the foreign firm they are
dealing with. MITI estimated that it would help solve Japan's
trade problem to the tune of about $10 billion dlrs a year.
| Commodities and Trade |
U.S. LEADING INDEX ROSE 0.7 PCT IN FEBRUARY
| The U.S. index of leading indicators
rose a seasonally adjusted 0.7 pct in February after a revised
0.5 pct January fall, the Commerce Department said.
The department previously said the index fell 1.0 pct in
January.
The February increase left the index at 187.1 over its 1967
base of 100, and was led by a rise in stock prices.
A total of four of nine indicators available for February
contributed to the increase in the index.
Besides stock prices, they were manufacturers' new orders
for consumer goods and materials, average work week and
building permits.
Five of nine indicators were negative. They were change in
sensitive materials prices, money supply, vendor performance,
average weekly initial claims for state unemployment insurance,
and contracts and orders for plant and equipment.
The main factor in the January revision was contracts and
orders for plant and equipment, the department said.
December also was revised to a 2.4 pct rise from an earlier
2.3 pct rise due to a change in outstanding credit.
The index of coincident indicators, which measures the
current economy, rose 0.9 pct in February after a decline of
1.3 pct in January and a rise of 0.9 pct in December.
The index of lagging indicators, which measures past
economic activity, decreased 0.3 pct in February after
increasing 1.7 pct in January and falling by 0.5 pct in
December.
The department said it has suspended net business formation
from the leading indicators index because it has deteriorated
as a measure of change in the business population.
| Other |
U.K. MONEY MARKET GIVEN FURTHER 168 MLN STG HELP
| The Bank of England said it had provided
the money market with a further 168 mln stg assistance in the
afternoon session. This takes the Bank's total help so far
today to 1.88 billion stg and compares with its estimate of a
record two billon stg shortage in the system.
The central bank purchased bank bills outright comprising
25 mln stg in band one at 9-7/8 pct, 138 mln stg in band two at
9-13/16 pct and three mln stg in band three at 9-3/4 pct.
It also bought two mln stg of treasury bills in band two at
9-13/16 pct.
| Corporate News |
ICO BOARD PASSES OVER COFFEE QUOTA ISSUE
| Executive board members of the
International Coffee Organization, ICO, passed over the issue
of export quota negotiations at its regular meeting here,
delegates said.
No move was made to reopen dialogue on export quotas and no
further discussion on the issue is likely during the three-day
talks, they said.
Producer and consumer members of the ICO council failed to
agree export quota shares in early March.
Neither Brazil, the largest producer, nor the U.S., the
largest consumer, are ready to be flexible, delegates said.
"The situation is unchanged," consumer spokesman Abraham Van
Overbeeke told reporters. "As long as Brazil sticks to its
position there will not be quotas -- there is no point in
meeting."
At the last council meeting, Brazil wanted to maintain its
previous quota share of around 30 pct of the market. Consumers
and a splinter group of eight producers favoured redistribution
of export shares using "objective criteria," which would likely
have reduced Brazil's share.
Brazilian delegate Lindenberg Sette said that, if quota
negotiations were to resume, the 1.0 mln bag shortfall Brazil
was willing to give up in early March if the producer proposal
was accepted would no longer be on the table.
"As we said from the start...No agreement, no one million
bags," he told Reuters.
Shortfalls of 200,000 bags offered by OAMCAF, the African
and Malagasy Coffee Organization, and 20,000 bags offered by
Angola, are also no longer valid, delegates said.
The closest the board came to discussing quotas was a
briefing by the Guatemalan ICO delegate Rene Montes on a recent
Latin American producers meeting in Managua, delegates said.
There, the producers expressed their political will to
negotiate basic quotas, particularly in the face of the
damaging drop in coffee prices after the council failed to
agree quotas, Montes said.
The ICO board also reviewed export statistics and stock
verification. They expected talks on stock verification to take
up the remainder of today's session, delegates said.
| Corporate News |
HUDSON FOODS <HFI> TO MAKE ACQUISITION
| Hudson Foods Inc said it has
agreed in principle to acquire Thies Cos Inc, a poultry, beef
and pork products provider to midwest supermarkets and food
distributors with sales of about 69 mln dlrs for the year ended
November One.
The company said a definitive agreement is expected to be
signed in April. Terms were not disclosed.
| Financial Reports |
IVORY COAST BOOSTS MAIZE OUTPUT
| Ivory Coast maize output has risen
steadily during the last two decades and the country aims to
produce two mln tonnes annually "very rapidly," the official
daily Fraternite Matin reported.
It said the country reached self-sufficiency in maize three
years ago and harvested a record 530,000 tonnes in 1985
compared with only 200,000 tonnes 20 years earlier.
The daily did not detail 1986 output but said further
production increases are anticipated in the years ahead as part
of a policy of boosting domestic output to cut grain imports.
| Financial Reports |
ESSO MALAYSIA REPORTS HIGHER PROFIT IN 1986
| Esso Malaysia Bhd, a unit of Exxon
Corp of the U.S., Reported net profit of 70 mln ringgit from
its petroleum and ammonia operations in 1986 compared with 48.7
mln in 1985. Chairman Gerald F Cox said the improved
performance was mainly due to product prices falling more
slowly than crude prices during the year.
He added that total sales volume increased as a result of
higher offtake by affiliated companies, while inland market
sales were maintained at around the previous year's levels.
But growth prospects in 1987 remained weak and 1986 results
are unlikely to be repeated in the current financial year.
| Financial Reports |
THAILAND BUYS YUGOSLAV CRANES IN BARTER DEAL
| The Cabinet approved a plan for the
Port Authority of Thailand to buy six gantry cranes from
Metalna Co of Yugoslavia for about 13.4 mln dlrs, a government
spokesman said.
He said Thailand will pay for 25 pct of the cost of the
cranes in U.S. Dlrs and the rest by sales of rice, textiles and
other commodities to Yugoslavia.
The Bangkok Shipowners and Agents Association has appealed
to the government to scrap the purchase plan. It said it would
be an unnecessary expense as most vessels calling at the port
already have their own cargo handling equipment.
| Financial Reports |
JEWELMASTERS <JEM> SEES NET BELOW ESTIMATES
| Jewelmasters Inc said it expects to
report net income for the year ended January 31 20 to 25 pct
below analysts' estimates of 1,750,000 dlrs or 95 cts per share.
Jewelmasters sales sales for the year just ended were about
52.5 mln dlrs. In the prior year it earned 1,650,000 dlrs on
sales of 45.1 mln dlrs.
Jewelmasters said net income for the year was hurt by
disappointing sales in December and January, a high level of
advertising spending in the fourth quarter, higher than
expected opening expenses for 34 additional units and an
adjustment to inventory associated with a shift to a more
comprehensive inventory system.
Jewelmasters said it expects to report audited results for
the fourth quarter and year in about three weeks.
| Financial Reports |
ALUMINIUM CAPACITY GROWTH TREND SEEN INSUFFICIENT
| Aluminium capacity expansion planned for
the period after 1990 will be insufficient to supply any
acceleration in demand growth, let alone an increase on the
scale which seems likely, according to analyst Anthony Bird
Associates' 1987 Aluminium Review.
By 1995 non-socialist world primary capacity will need to
be around 18 mln tonnes, whereas on current plans only 15 mln
tonnes are scheduled, Bird said.
Bird forecast higher economic growth after 1990 and
increased imports by less developed countries.
Aluminium consumption growth is not expected to accelerate
by as much as general growth, but non-socialist world
consumption is nevertheless forecast to increase sharply from
13.77 mln tonnes in 1990 to 17.25 mln tonnes in 1995, Bird
said.
Aluminium companies were slow to adjust to the pace of
change after 1973, the review said, and now they have completed
this transition they may be in danger of remaining preoccupied
with the strategies of retrenchment and survival which have
served them well in recent years.
In order to encourage the construction of additional
smelters aluminium prices will need to settle at a higher
level.
Production costs are likely to rise again in the years
ahead as the glut of alumina capacity vanishes and electricity
suppliers take a more aggressive line with aluminium companies,
according to the review.
At March 1987 prices the three most likely cost-price
scenarios call for a long-run aluminium price of between 73 and
89.5 cents a lb, depending on exchange rates, Bird said.
Such a price development is not expected to cause any
marked competitive problems for the metal because of the likely
rise in commodity prices as a whole and cost pressures in the
pipeline for steel and copper.
In the short term, however, the outlook is dull, Bird said,
as the world economy has not responded well to the
opportunities offered by cheap oil.
Its 1987 consumption forecast of 13.01 mln tonnes is 0.4
pct down on 1986, while production is forecast six pct higher
in 1987 at 12.67 mln tonnes.
| Financial Reports |
ALPHA INDUSTRIES <AHA> SELLS DIVISION
| Alpha Industries Inc said it has
sold its Microelectronics Division to Triax Corp for
undisclosed terms, retroactive to February One.
It said the division has yearly revenues of about 12 mln
dlrs and makes RF microwave components for the defense
electronics industry.
Alpha said it plans to concentrate on the high frequency
portion of the electromagnetic spectrum.
| Commodities and Trade |
NORWEGIAN UNEMPLOYMENT FALLS IN MARCH
| Unemployment fell in March to 36,510, or
1.7 pct of the workforce, compared with 39,700 (1.9 pct) in
February and 38,839 (2.2 pct) in March 1986, the Labour
Directorate said.
| Financial Reports |
J.C. PENNEY DECLARES TWO FOR ONE SPLIT, RAISES QUARTERLY
|
J.C. PENNEY DECLARES TWO FOR ONE SPLIT, RAISES QUARTERLY
| Financial Reports |
LONDON MEAT FUTURES NEED MARKETING - CHAIRMAN
| Pigmeat and beef futures, which have
been thinly traded on the London Meat Futures Exchange, LMFE,
despite lower physical prices and the introduction of new
contracts, need more effective marketing, LMFE chairman Pat
Elmer said in his annual report.
In 1986 the Exchange introduced live cattle and pig cash
settlement contracts, representing a move away from the
problems of cash distortions and squeezes, which initial
deliverable "buyers option" contracts created, he said.
Although the physical industry is aware of the market and
follows its prices keenly, this has not been reflected in
market volume, Elmer said.
"If we are to achieve our true potential the floor members
must give the market much more time and attention," he added.
| Financial Reports |
INTERLINK SAYS NOT PLANNING BID FOR PUROLATOR
| British package courier <Interlink
Express Plc> does not plan to bid for the whole or part of
Purolator Courier Corp <PCC.N>, a spokesman said.
"There is no intention of making any sort of approach to
Purolator," the spokesman told Reuters, adding, "it would be a
case of David versus Goliath."
Interlink shares started trading in the U.K. Unlisted
Securities Market in October 1986. It posted pre-tax profits of
2.13 mln stg on turnover of 9.6 mln stg in the six months to
December 31, 1986. Purolator last year topped turnover of 465
mln dollars, the spokesman said.
between Purolator and Interlink in view of a takeover or
participation. He categorically denied press reports suggesting
Interlink was developing a buyout bid.
The reports said the proposed bid would be a price above
the 35 dlrs per share offered by <E.F. Hutton LBO Inc>. The
Hutton offer expires tomorrow.
The spokesman said Interlink was seeking to expand
business, first in continental Europe and later in the U.S. But
the company did not expect to gain foothold in the U.S. Market
until 1989 at the earliest, he said.
| Corporate News |
SUPRADUR COS INC <SUPD> YEAR NET
| Oper shr 1.58 dlrs vs 77 cts
Oper net 1,648,000 vs 817,000
Sales 25.7 mln vs 20.5 mln
NOTE: Net excludes discontinued operations gain 451,000
dlrs vs loss 4,310,000 dlrs.
| Commodities and Trade |
SOUTH KOREA TO RESIST CURRENCY REVALUATION
| South Korean Finance Minister Chung
In-yong will resist pressure for a currency revaluation to cut
South Korea's trade surplus with the United States when he
meets Treasury Secretary James Baker next week, Finance
Ministry officials said.
They said Chung would leave Monday to attend the
International Monetary Fund's Interim Committee meeting and to
hold talks with Baker and other U.S. officials on ways to
reduce the surplus.
The April 9 committee meeting is expected to review the
agreement by six industrialized nations in Paris last month
that newly-industrialized countries, such as South Korea and
Taiwan, should allow their currencies to increase in value.
| Corporate News |
PENNEY <JCP> SETS STOCK SPLIT, RAISES QUARTERLY
| J.C. Penney Co Inc said its board
declared a two-for-one stock split and raised the quarterly
dividend 12 cts per share on a presplit basis to 74 cts.
Both are payable May One to holders of record April 10.
| Commodities and Trade |
HILLENBRAND INDUSTRIES INC <HB> 1ST QTR FEB 28
| Shr 31 cts vs 28 cts
Net 11.9 mln vs 10.9 mln
Revs 167.2 mln vs 154.0 mln
| Corporate News |
U.K. MONEY MARKET GIVEN 215 MLN STG LATE HELP
| The Bank of England said it had provided
the money market with late assistance of around 215 mln stg.
This takes the bank's total help today to some 2.096 billion
stg and compares with its forecast of a two billion stg
shortage in the system today.
| Financial Reports |
CABLE SAYS CONSORTIUM PROPOSALS NOT ACCEPTABLE
| Cable and Wireless Plc <CAWL.L> said
proposals to resolve a dispute over entry to Japan's
telecommunications market were not acceptable.
A company spokesman said the proposals appear to have been
made in today's edition of the Japanese daily Asahi by Fumio
Watanabe, head of a telecommunications committee with the
Federation of Economic Organisations.
However, the suggestion still recommended a merger between
the two consortia tendering for contracts and would give Cable
a five pct stake, more than the three pct originally proposed
but less than the 20 pct it holds in its original venture, he
said.
The proposal would also offer a Cable nominee a seat on the
board of the merged company.
The spokesman said he believed Japan should accept
applications from the two rivals for fair review.
Earlier today Cable shares firmed on market speculation
that the dispute -- which is being treated by Britain's
government as a test case of how open the Japanese
telecommunications market is -- was near settlement.
Cable shares at 1350 GMT were quoted at 375p compared with
a close last night at 364p.
| Financial Reports |
U.S./JAPAN TRADE WAR NOT IN UK'S INTEREST - LAWSON
| U.K. Chancellor of the Exchequer Nigel
Lawson said the United States and Japan must work to avert a
possible trade war, and he added that a trade war would not be
in the interests of Britain.
Lawson told journalists that "the prospects for the (U.K.)
economy look very very good - providing we can avoid a trade
war." He stressed that "a heavy responsiblity in different ways
lies on Japan and the United States to ensure that we do avoid
such a trade war."
Asked whether he believed such a trade war could be
averted, Lawson replied, "I very much hope so."
Britain last week warned that it would retaliate if Japan
did not move soon to open its markets to outside competition.
Prime Minister Margaret Thatcher gave notice that the U.K.
Would fight the Japanese government's attempt to prevent (Cable
and Wireless Plc) (CAWL.L) from taking a significant position
in a new Japanese international telecommunications venture.
But British officials are now trying to dampen
anti-Japanese rhetoric, to try to keep developments under
control.
The British Conservative government will on Thursday
consider what legal options are available to it to try to
increase U.K. Access to Japanese markets, officials said.
| Market and Economy |
GAF CORP OFFERS 36 DLRS A SHARE CASH FOR BORG-WARNER
|
GAF CORP OFFERS 36 DLRS A SHARE CASH FOR BORG-WARNER
| Commodities and Trade |
ECONOMISTS CUT AUSTRIAN GDP GROWTH FORECAST
| The Institute for Economic Research
(WIFO) said it has cut its forecast for Austria's 1987 gross
domestic product growth to a real one pct from a two pct
forecast made last December.
WIFO chief Helmut Kramer told a new conference that he saw
the one pct figure, which compares with 1.8 pct last year, as
the upper limit of growth. The institute had made the revision
due to poor prospects for Austrian exports, he added.
A collapse in sales to the Eastern European and oil
producing states, combined with the effects of the dollar's
fall, mean exports overall are unlikely to rise this year.
Kramer said domestic demand alone would fuel growth this
year. After last year's 2.8 pct rise in real incomes, private
consumption was likely to rise 2.25 pct in 1987 after 1.9 pct
in 1986, despite a present trend towards higher savings.
Unemployment was likely to rise to almost six pct from 5.2
pct last year due to the slack economic activity.
Kramer said the current account was likely to run a deficit
of about four billion schillings compared with a 2.6 billion
surplus recorded last year. The National Bank, Austria's
central bank, last month forecast the current account would be
roughly in balance this year.
However, Kramer said the lower economic growth should have
no notable effect on the government's attempts to cut the
budget deficit. This year's aim of reducing the deficit to 4.9
pct of GDP from 5.1 pct in 1986 could still be achieved, he
said.
| Commodities and Trade |
FERRUZZI MAY FLOAT UP TO 49 PCT OF PARIS UNIT
| <Gruppo Ferruzzi> is studying a
project which could result in a public share offer of up to 49
pct of its French unit <European Sugar (France)> and could
raise around 400 mln dlrs, Ferruzzi chairman Raul Gardini said.
Gardini told Reuters the operation under consideration was
aimed at "international markets" and that the figure of 400 mln
dlrs given in some press reports "was probably about right."
European Sugar, wholly-owned by Ferruzzi unit Eridania
Zuccherifici Nazionali SpA <ERDI.M>, is expected to absorb the
European corn wet milling business of CPC International Inc
<CPC.N> which Ferruzzi recently agreed to buy.
Ferruzzi announced last week it had agreed in principle to
buy the CPC operation for 630 mln dlrs.
A Ferruzzi spokesman later confirmed that the group was
studying the transfer of the CPC business to European Sugar
along with a possible share offering in the Paris unit, but
gave no details.
The flotation plan has been interpreted by financial
analysts as a means of helping finance the acquisition of the
CPC business.
In London yesterday, chairman of Belgian starch producer
<Amylum NV> Pierre Callebaut told Reuters that since Ferruzzi
was "apparently still organising finance," his company might
still succeed with its rival bid for the CPC business.
Gardini, commenting on Callebaut's remarks, said the 630
mln dlrs agreed for the CPC acquisition would be paid "at the
date foreseen in the preliminary contract."
Gardini could not reveal the date in question nor give any
indication of the likely timing of an offering of shares in
European Sugar, but it was announced last week that Ferruzzi's
purchase of the CPC business was expected to be completed by
September 30.
Callebaut said yesterday that Amylum was surprised and
disappointed that its 675 mln dlr bid cash offer for CPC's
European business was apparently rejected in favour of
Ferruzzi's lower bid.
Gardini, commenting on Callebaut's remarks, said "Amylum
should know that one succeeds in a bid by making the right
offer at the right moment - exactly as Ferruzzi did in the case
of the acquisition of CPC's European business."
Gardini said it was not Callebaut's business to concern
himself with the European Sugar capital raising operation under
study, he added.
Asked about press reports that Ferruzzi might follow up the
European Sugar flotation with the sale of 49 pct of the CPC
business, Gardini said: "We do not exclude having minority
partners in the CPC business." He declined to elaborate.
| Corporate News |
CORRECTED - GAF CORP OFFERS 46 DLRS A SHARE CASH FOR BORG-WARNER (CORRECTING AMOUNT)
|
CORRECTED - GAF CORP OFFERS 46 DLRS A SHARE CASH FOR BORG-WARNER (CORRECTING AMOUNT)
| Financial Reports |
U.S. TREASURY'S BAKER SEES RATE STABILITY
| Treasury Secretary James Baker said
the agreement among the industrial countries reached in Paris
last month should foster stability of exchange rates at around
current levels.
In testimony before the House Appropriations Committee,
Baker outlined many of the measures taken designed to achieve
more balanced growth and a reduction of trade imbalances during
the Paris meeting.
"These measures should also foster greater stability of
exchange rates around current levels," he said.
Baker reiterated that the ministers at the Paris meeting
agreed that their currencies were within ranges "broadly
consistent with underlying economic fundamentals and that
further substantial exchange rate shifts could damage growth
and adjustment prospects."
He added: "In these circumstances, we agreed to cooperate
closely to foster stability of exchange rates around current
levels."
| Corporate News |
GAF <GAF> SEEKS ALL OF BORG-WARNER <BOR>
| GAF Corp said it has made an all
cash merger proposal to Borg-Warner Corp at 46 dlrs per share
for all the company's common stock.
Following a meeting yesterday with Borg-Warner officials
and investment bankers, GAF said, it is today delivering a
letter to the Borg-Warner board outling the terms of the
proposal that would be made by tender offer, pursuant to a
mutually acceptable merger agreement to be approved by the
Borg-Warner board and conditioned on that board's
recommendation of the tender offer and merger.
GAF, in its letter, stated it intends to finance the
proposed acquisition entirely with its own funds and bank
borrowings under a syndicated bank loan from a group of banks
led by Chase Manhattan Corp's <CMB> Chase Manhattan Bank.
Last week, GAF increased its ownership of Borg-Warner
shares to 19.9 pct of those outstanding Minstar Inc <MNST> sold
its 12.4 pct holding.
GAF emphasized "the amicable nature of the proposed
transaction," which it characterized as a partnership.
GAF said it wanted to discuss with the Borg-Warner board
key roles for Borg-Warner's senior management in the new
organization, board representation for Borg-Warner directors on
a newly constituted board, and a company name change.
GAF said it will be filing an amendment to its 13-D with
the U.S. Securities and Exchange Commission.
Borg-Warner has about 85.6 mln common shares outstanding.
Minstar chairman Irwin L. Jacobs sold his stake after
Borg-Warner after the company failed to respond to his
mid-February offer for a negotiated agreement at a minimum
price of 44 dlrs a share.
In November, Jacobs had offered to enter into acquisition
talks with Borg-Warner based on a price of between 43 and 48
dlrs a share.
| Commodities and Trade |
LIBERTY ALL-STAR <USA> SETS INITIAL PAYOUT
| Liberty All-Star Equity Fund said
it declared an initial dividend of five cts per share, payable
April two to shareholders of record March 20.
It said the dividend includes a quarterly dividend of three
cts a share and a special payout of two cts a share, which
covers the period from November three, 1986, when the fund
began operations, to December 31, 1986.
The fund said its quarterly dividend rate may fluctuate in
the future.
| Financial Reports |
<TRANS CANADA GLASS LTD> 4TH QTR LOSS
| Shr loss 11 cts vs loss eight cts
Net loss 500,000 vs loss 500,000
Sales 47.4 mln vs 37.5 mln
Year
Shr profit 70 cts vs profit 89 cts
Net profit 4.4 mln vs profit 5.3 mln
Sales 195.5 mln vs 148.3 mln
| Financial Reports |
GEOTHERMAL RESOURCES INTERNATIONAL INC <GEO>
| Year
Oper shr 1.23 dlrs vs 1.85 dlrs
Oper shr diluted 1.23 dlrs vs 1.79 dlrs
Oper net 6,799,000 vs 9,321,000
Revs 7,474,000 vs 12.4 mln
Avg shrs 4,503,000 vs 4,350,000
Avg shrs diluted 4,508,000 vs 5,206,000
NOTE: Net excludes gains from discontinued operations of
386,000 dlrs vs 903,000 dlrs.
1986 year net excludes gain 1,910,000 dlrs from sale of
discontinued operations.
Net includes tax credits of 9,450,000 dlrs vs 11.9 mln dlrs.
| Other |
FIRST CITY INDUSTRIES INC <FCY> 4TH QTR NET
| Opoer shr profit 17 cts vs loss 96 cts
Oper net profit 2,293,000 vs loss 7,110,000
Sales 116.0 mln vs 108.3 mln
Year
Oper shr loss 2.03 dlrs vs loss 2.12 dlrs
Oper net loss 13.8 mln vs loss 11.6 mln
Sales 454.0 mln vs 446.4 mln
NOTE: Net excludes gains from discontinued operations of
10.2 mln dlrs vs 1,985,000 dlrs in quarter and 4,262,000 dlrs
vs 1,320,000 dlrs in year.
| Commodities and Trade |
MAGELLAN PETROLEUM CORP <MPET> 3RD QTR JAN 31
| Shr loss nil vs profit nil
Net loss 90,656 vs profit 892
Revs 2,194,242 vs 2,481,784
Avg shrs 19.5 mln vs 16.1 mln
Nine mths
Shr profit nil vs loss one ct
Net profit 42,824 vs loss 149,150
Revs 6,364,992 vs 6,503,811
Avg shrs 19.5 mln vs 16.1 mln
NOTE: Net includes tax credits of 98,338 dlrs vs 81,492
dlrs in quartrer and 193,193 dlrs vs 226,560 dlrs in nine mths.
| Other |
TERRA MINES LTD <TMEXF> YEAR LOSS
| Shr loss 89 cts vs loss 17 cts
Net loss 13.9 mln vs loss 1,996,000
Revs 204,000 vs 2,087,000
Note: 1986 includes writedown of 12.5 mln dlrs for the
costs of mineral properties and deferred exploration and
development Bullmoose Lake in the Northwest Territories.
| Financial Reports |
MERRILL CORP <MRLL> 4TH QTR JAN 31 NET
| Shr 17 cts vs 17 cts
Net 777,000 vs 595,000
Revs 12.9 mln vs 11.7 mln
Year
Shr 68 cts vs 48 cts
Net 2,957,000 vs 1,614,000
Revs 49.4 mln vs 38.6 mln
Avg shrs 4,344,204 vs 3,337,284
| Corporate News |
D.O.C. OPTICS CORP <DOCO> 4TH QTR LOSS
| Shr loss 11 cts vs profit 12 cts
Net loss 286,817 vs profit 292,014
Revs 9,972,379 vs 9,413,304
Year
Shr profit 63 cts vs profit 57 cts
Net profit 1,547,893 vs profit 1,481,703
Revs 43.9 mln vs 41.0 mln
Avg shrs 2,474,820 vs 2,617,768
| Commodities and Trade |
U.S. SETS CORN DEFICIENCY PAYMENT HALF PIK CERTS
| The upcoming five-month deficiency
payments to corn and sorghum farmers will be made half in cash
and half in generic commodity certificates, a senior
Agriculture Department official told Reuters.
Around 300 mln dlrs of the in-kind certificates, or
"certs," will be mailed out to farmers around March 15 or 16,
Tom von Garlem, Assistant Deputy Administrator for USDA's state
and county operations, said.
The decision to make the payments in a 50/50 cash/certs
ratio was made Monday, but payments to producers will be
delayed until mid-month due to a problem with USDA's computer
program, von Garlem said.
get 11.5 cts per bushel in this next payment -- 5.75 cts in
certs and around 5.5 cts cash (5.75 cts minus Gramm-Rudman).
Farmers who did not receive advance deficiency payments at
signup will receive 63 cts per bushel. Slightly more than half
of this payment will be in cash, von Garlem said, but he said
this will not markedly upset the 50/50 ratio, since most
farmers got advance payments.
"The final certificate payments will be very close to 300
mln dlrs," he said.
When asked if the Office of Management and Budget had
resisted the cash/certs ratio, the USDA official said that "we
proposed 50/50 and OMB accepted it."
| Corporate News |
U.S. TREASURY'S BAKER SEES EXPANSION CONTINUING
| Treasury Secretary James Baker said
that the current expansion, which he noted was in its fifth
year, will continue in the period ahead.
He told the House Appropriations Committee that "there is
every prospect that the current expansion will continue
unabated through 1987 and the years beyond."
Baker said interest rates over the period have continued to
decline and that "policies of the Federal Reserve assure that
ample credit was available.
He said that the administration's longer term forecast
envisioned that "we will maintain and improve upon our progress
in bringing down the rate of inflation."
| Corporate News |
EC APPROVES MEDITERRANEAN FINANCIAL PACKAGES
| EC ministers have approved financial
packages for several Mediterranean states totalling 1.6 billion
European currency units, an EC official said.
The packages, part of special EC trade agreements with
Tunisia, Egypt, Lebanon, Israel, Algeria, Morocco and Jordan
until 1992, include 615 mln Ecus in grants, he said.
They include one billion Ecus in loans from the European
Investment Bank, the EC long-term financing arm. The framework
for the transfers was signed yesterday by EC farm ministers
after being agreed in principle by foreign ministers earlier.
| Commodities and Trade |
SOVIET UNION FEATURES IN U.K. GRAIN EXPORTS
| The Soviet Union featured prominently in
U.K. Grain exports outside the EC for the period July 1/March
13, taking a combined total of 1.10 mln tonnes of wheat and
barley out of all-destination U.K. Exports of 7.16 mln tonnes,
the Home Grown Cereals Authority said, quoting provisional
Customs and Excise figures.
The Soviet total comprises 634,000 tonnes of wheat and
472,000 tonnes of barley. Grain traders said the figures
understate shipments already made by several thousand tonnes
and they expect total U.K. Grain exports to the USSR this
season to reach 2.5 mln tonnes, comprising 1.5 mln wheat/1.0
mln barley.
| Financial Reports |
SOUTHERN HOSPITALITY CORP <SHOS> 3RD QTR FEB 28
| Shr loss 23 cts vs loss 11 cts
Net loss 1,128,412 vs loss 548,054
Sales 9,827,784 vs 12.1 mln
Nine mths
Shr loss 19 cts vs profit 11 cts
Net loss 926,924 vs profit 527,004
Sales 32.3 mln vs 37.5 mln
| Corporate News |
ELDER-BEERMAN STORES CORP <ELDR> 4TH QTR FEB ONE
| Oper shr 89 cts vs 1.31 dlrs
Oper net 3,345,000 vs 4,885,000
Sales 126.8 mln vs 120.1 mln
Year
Oper shr 1.67 dlrs vs 2.15 dlrs
Oper net 6,299,000 vs 8,013,000
Sales 380.9 mln vs 352.1 mln
NOTE: Share adjusted for five pct stock dividend.
Prior year net both periods excludes gain 1,998,000 dlrs
from reversion of overfunded pension plans.
Year net includes pretax LIFO inventory charge 600,000 dlrs
vs credit 900,000 dlrs.*Tax rate 40.6 pct vs 32.0 pct due to
impact of Tax Reform Act of 1986.
Bad debt writeoffs for year up one mln dlrs pretax from the
year before.
| Financial Reports |
TREASURY'S BAKER SAYS COOPERATION WORKING
| Treasury Secretary James Baker said
that the agreement in Paris to cooperate in exchange rate
changes showed that the process of coordination agreed to at
the Tokyo summit was working.
He told the House Appropriations Committee the meeting
"demonstrated that the process is working."
He noted that the industrial surplus countries committed
themselves to strengthen their growth prospects while the
deficit countries agreed to reduce their domestic imbalances.
Baker said that for its part, Japan announced a cut in its
discount rate to 2.5 pct and committed itself to prepare a
comprehensive economic program to stimulate domestic demand
after the Diet completes action on the current budget.
He said the United States must also do its share pressing
for reductions in the federal budget deficit through spending
cuts.
"And we must continue to oppose protectionist pressures,"
he added.
| Financial Reports |
AKZO PLANNING US INVESTMENTS
| Dutch chemicals group Akzo
NV <AKZO.AS> said it hoped to consolidate its core activities
this year by making small acquisitions in the US.
Akzo chairman Aarnoud Loudon told a news conference on its
1986 report that the company wanted to achieve the same level
of US investments it had before it divested its fibre firm
American Enka in December 1985, when US investments represented
20 pct of Akzo's total capital.
The US expansion plans were not an attempt to compensate for
losses in guilder income through the lower dollar, Loudon said.
He said a more important factor was the speed of growth in
the US, adding "It's the largest industrial market in the world."
But he said the company would also be looking at possible
acquisitions in Europe.
Despite its highly liquid cash flow, Akzo did not plan
acquisitions on a scale that would negatively influence the
company's debt/equity ratio, Loudon said.
The chairman said in the past two years Akzo had spent 1.1
billion guilders on acquisitions, of which nearly two thirds
were in the United States.
REUTER...
| Commodities and Trade |
OECD SEES MAJOR ADJUSTMENT FOR AUSTRALIA
| Australia faces a major medium term
adjustment to reduce debt and improve its economic performance,
the Organisation for Economic Cooperation and Development said
in its latest annual review of the Australian economy.
It said Australia had a current external deficit of 5-3/4
pct of gross domestic product, high and rapidly rising external
debt equal to 30 pct of GDP, growing servicing costs and
inflation above nine pct, far higher than that of other OECD
countries.
A major policy change in early 1985 helped lay the basis
for sustained non-inflationary growth and external
competitiveness had improved, but economic performance overall
had sharply deteriorated since June 1985.
A major shift of real resources to the external sector --
about 4-1/2 pct of GDP by 1990-91 -- was required for the
economy to expand in line with potential, for employment to
grow, and for the debt/GDP ratio to stabilize, it said.
Success depended on the setting of right policies including
tighter fiscal policy, a reduction in the public sector
borrowing requirement and on private sector behaviour.
Looking ahead over the next 18 months, the OECD expected
economic performance to improve, partly as a result of tighter
fiscal and monetary policy, and a substantial improvement in
trade volumes.
It said positive GDP growth of three pct might be restored,
the current external deficit could fall to some 4-1/2 pct of
GDP by the first half of next year, while inflation was
projected to decelerate to around five to 5-1/2 pct by
mid-1988.
Continued real wage moderation was essential to maintain
the competitive edge created by the Australian dollar's
depreciation, and to maintain if not boost profit shares in
order to encourage business investment.
The report urged Australia to broaden its export base by
developing viable and competitive service and manufacturing
industries, and not count on a recovery of commodity markets to
correct its external imbalances.
It added Australia should reduce protection levels in
manufacturing, even though faster trade liberalisation would no
doubt hurt the most protected sectors of industry.
| Financial Reports |
U.S. SUGARBEET PLANTINGS SEEN RISING IN 1987
| Representatives of U.S. sugar grower
organizations said they expect some increase the area planted
to sugarbeets this year and said the prospects for the 1987
cane sugar crop also are good.
Dave Carter, president of the U.S. beet sugar association,
said plantings may be up in two major beet growing states,
California and Michigan, while sowings could be down slightly
in the largest producing state of Minnesota.
Overall, Carter predicted beet plantings would rise in the
midwest, and this coupled with increases in California would
increase U.S. sugarbeet plantings slightly from the 1.232 mln
acres sown last year.
USDA later today releases its first estimate of 1987 U.S.
sugarbeet plantings in the prospective plantings report.
The main reason for the expected increase in beet sowings
is that returns from competing crops such as soybeans and
grains are "just awful," said Carter.
In the midwest, bankers are strongly encouraging farmers to
plant sugarbeets because the U.S. sugar program offers a loan
rate of 18 cents per pound and because payments to farmers from
beet processors are spread evenly over the growing season, said
Luther Markwart, executive vice president of the American
sugarbeet growers association.
"The banks are putting a lot of pressure on these guys,"
Markwart said.
In some areas there are waiting lists of farmers seeking a
contract with processors to plant beets, Markwart said.
USDA's report today will not include any harvested area
estimates for sugarcane, but representatives of Florida, Hawaii
and Louisiana growers said crop prospects are good.
Horis Godfrey, a consultant representing Florida and Texas
cane growers, said Florida cane is off to a good start because
for the first time in several years there was no winter freeze.
Although area to be harvesteed is about the same as last year,
cane production may be up in Florida this year, he said.
In Hawaii, area harvested may decline slightly this year,
but likely will be offset again in 1987 by increased yields,
said Eiler Ravnholt, vice president of the Hawaiian Sugar
Planters Association.
The acreage planted to sugarbeets will receive more than
the usual amount of attention this year because of mounting
concern that continued increases in domestic sugar production
threaten the U.S. sugar program, industry sources said.
The increases in beet plantings have especially caused
concern among cane growers who have not expanded plantings,
particularly in Hawaii, industry officials said.
"We haven't had a good weather year throughout the beet and
cane areas in more than five years," said Godfrey, adding that
the U.S. may be due for a good weather year.
Rep. Jerry Huckaby, D-La., chairman of the House
agriculture subcommittee responsible for the sugar program, has
threatened to offer legislation next year to curb domestic
sweetener output if growers fail to restrain output in 1987.
| Financial Reports |
HECK'S INC <HEX> 4TH QTR JAN THREE NET
| Shr losses not given
Net loss 7,800,000 vs loss 5,400,000
Sales 181.2 mln vs 182.0 mln
Year
Shr losses not given
Net loss 17.8 mln vs loss 4,900,000
Sales 566.3 mln vs 523.3 mln
NOTE: Company operating in Chapter 11 bankruptcy.
1986 year net includes four mln dlr LIFO charge and
3,400,000 dlr credit from pension plan termination.
| Financial Reports |
CAPITAL BANCORP <CAPB> SEES GAIN ON UNIT SALE
| Capitol Bancorp said it has sold its 80
pct interest in CAP Mortgage Co Inc for 3.1 mln dlrs, adding
this is expected to result in an after tax gain of about
900,000 dlrs to be reported in the first quarter.
Capitol Bancorp said the CAP Mortgage interest was sold to
Michael M. Bronstein, president of CAP Mortgage, and Robert
Fox, president of Fox Properties Inc. Bronstein already held
the other 20 pct of CAP Mortgage's stock.
| Financial Reports |
4G DATA SYSTEMS <GGGG> 3RD QTR NET
| qtr ends Jan 31
Shr nil vs nil
Net 2,213 vs 16,288
Revs 1,418,019 vs 795,522
Avg shrs 6,650,000 vs 4,150,000
Nine mths
Shr two cts vs three cts
Net 118,984 vs 103,384
Revs 4,066,605 vs 2,741,241
Avg shrs 6,650,000 vs 3,969,444
| Corporate News |
<NIKI-LU INDUSTRIES INC> YEAR NET
| Oper shr profit 18 cts vs loss 38 cts
Oper net profit 577,000 vs loss 1,147,000
Revs 16.3 mln vs 19.8 mln
Avg shrs 3,227,625 vs 3,057,206
NOTE: 1986 net excludes 485,000 dlr tax credit.
| Financial Reports |
WALLACE COMPUTER SERVICES INC <WCS> 2ND QTR NET
| Shr 69 cts vs 64 cts
Net 7,046,000 vs 6,492,000
Sales 85.7 mln vs 79.6 mln
Six Mths
Shr 1.28 dlrs vs 1.19 dlrs
Net 13,098,000 vs 12,006,000
Sales 166.3 mln vs 153.3 mln
NOTE: Periods end January 31, 1987 and 1986, respectively.
| Financial Reports |
COLOROCS CORP <CLRX> YEAR LOSS
| Shr loss 28 cts vs loss 29 cts
Net loss 2,086,477 vs loss 1,466,907
Revs 218,864 vs 60,000
Avg shrs 7,510,781 vs 4,990,168
| Commodities and Trade |
CSCE RESTRUCTURES COFFEE FUTURES DAILY LIMITS
| The Coffee, Sugar and Cocoa Exchange
has expanded the normal daily trading limit in Coffee "C"
contracts to 6.0 cents a lb, from the previous 4.0 cents,
effective today, the CSCE said.
The new daily limits apply to all but the two nearby
positions, currently May and July, which trade without limits.
In addition, the 6.0 cent limit can be increased to 9.0
cents a lb if the first two limited months both make limit
moves in the same direction for two consecutive sessions,
according to the CSCE announcement.
Before the rule change today, the CSCE required two days of
limit moves in the first three restricted contracts before
expanding the daily trading limit.
Under new guidelines, if the first two restricted
deliveries move the 6.0 cent limit for two days the Exchange
will expand the limit. The expanded 9.0 cent limit will remain
in effect until the settling prices on both of the first two
limited months has not moved by more than the normal 6.0 cent
limit for other contracts in two successive trading sessions,
the CSCE said.
| Financial Reports |
KANSAS EXCHANGE HITS CFTC POSITION LIMIT PLAN
| The Kansas City Board of Trade,
KCBT, has asked federal futures regulators to modify a proposal
to raise the Chicago Board of Trade's, CBT, speculative
position limits on wheat futures contracts, saying the plan
would put the the Kansas exchange "at a serious competitive
disadvantage."
The Commodity Futures Trading Commission, CFTC, last month
proposed raising CBT wheat speculative limits to 1,200
contracts all months net from 600 contracts, and to 900
contracts for any single month from 600 contracts.
At the same time, CFTC proposed leaving KCBT's wheat
speculative position limits unchanged.
"Higher limits for CBT wheat than for KCBT wheat would
significantly impair the KCBT's ability to compete with the CBT
for speculative interest," Michael Braude, president of the
Kansas exchange, said in a letter to CFTC.
A CFTC spokesman said the commission took into account open
interest affected by existing speculative limits in proposing
to raise CBT's limits.
KCBT said the CFTC proposal would reduce hedging
efficiency, constrain growth of intermarket spreading and of
the exchange's wheat options contract and impair its ability to
attract large speculators.
The Kansas City exchange asked the commission to amend its
proposal to change the limits for KCBT wheat to the exact same
bushel amount as specified for CBT wheat.
CFTC will consider public comments on the proposal until
June 3.
| Financial Reports |
FERRUZZI MAY FLOAT UP TO 49 PCT OF PARIS UNIT
| Gruppo Ferruzzi is studying a
project which could result in a public share offer of up to 49
pct of its French unit European Sugar (France) and could raise
around 400 mln dlrs, Ferruzzi chairman Raul Gardini said.
Gardini told Reuters the operation under consideration was
aimed at "international markets" and that the figure of 400 mln
dlrs given in some press reports "was probably about right."
European Sugar, wholly-owned by Ferruzzi unit Eridania
Zuccherifici Nazionali SpA, is expected to absorb the European
corn wet milling business of CPC International Inc which
Ferruzzi recently agreed to buy.
Ferruzzi announced last week it had agreed in principle to
buy the CPC operation for 630 mln dlrs.
A Ferruzzi spokesman later confirmed that the group was
studying the transfer of the CPC business to European Sugar
along with a possible share offering in the Paris unit, but
gave no details.
The flotation plan has been interpreted by financial
analysts as a means of helping finance the acquisition of the
CPC business.
| Market and Economy |
GANDALF <GANDF> ACQUIRES STAKE IN DATA/VOICE
| Gandalf Technologies Inc said it
acquired a significant minority equity interest in privately
held Data/Voice Solutions Corp, of Newport Beach, Calif., for
undisclosed terms.
Gandalf did not specify the size of the interest.
Data/Voice is a three-year-old designer and manufacturer of
a multiprocessor, multiuser MS-DOS computing system that
Gandalf plans to integrate with its private automatic computer
exchange information system, Gandalf said.
| Financial Reports |
KEYCORP <KEY> AGREES TO ACQUIRE UTAH BANK
| Keycorp said it has signed a
definitive agreement to acquire Commercial Security Bancorp
<CSEC> by exchanging Keycorp common valued at 63 dlrs for each
Commercial Securities share.
Keycorp said this gives the transaction an indicated value
of 102 mln dlrs.
Keycorp said the amount of its stock to be exchanged will
be based on the daily average closing price of the shares for
an unspecified period prior to the closing of the acquisition.
Based on a maximum of about 2.75 Keycorp shares and a
minimum of about 1.8 Keycorp to be exchanged, the agreement
provides that if the average price of Keycorp common is less
than 21.50 dlrs a share during the pricing period, the
agreement will terminate unless a new conversion ratio can be
negotiated.
Keycorp said the transaction is designed to be tax free to
Commercial Security shareholders. The company said it will
treat the merger as a pooling of interests.
It said the proposal is subject to approval by Commercial
Security shareholders and various regulators.
Keycorp said the merger is expected to become effective as
soon as possible after December 31, 1987, the date Utah's
interstate banking law becomes operational.
Keycorp said Richard K. Hemingway and certain members of
the Hemingway family who own about 30 pct of Commercial
Security's outstanding shares have agreed to vote in favor of
the transaction and not dispose of their stock.
Based in Salt Lake City, Commercial Security ended 1986
with assets of 830.3 mln dlrs, net loans of 496.6 mln dlrs and
deposits of 707.9 mln dlrs. It had net income of 5.1 mln dlrs
or 3.16 dlrs a share on 1.6 mln average shares outstanding last
year.
| Financial Reports |
AMERICAN VANGUARD CORP <AMGD> YEAR NET
| Shr 57 cts vs 27 cts
Net 1,002,000 vs 470,000
Sales 15.9 mln vs 12.0 mln
Note: 4th qtr data not available
| Corporate News |
EXXON <XON> OIL AND GAS PRODUCTION ROSE IN 1986
| Exxon Corp said in its annual report
that it raised production in 1986 although it did not replace
all oil and gas produced.
The company said that it added about four pct to production
bringing it to 1.8 mln bpd, the highest level since 1979, based
largely on increased production of oil overseas but additions
to its reserves from new discoveries and reserve acquisitions
did not replace all of the oil and gas produced.
The company said that the average price for oil and gas
declined 41 pct in 1986 from the previous year sparking a 38
pct decline in its earnings from exploration and production.
Exxon's earnings from exploration and production in 1986
fell to 3.1 billion dlrs from 4.9 billion dlrs in 1985.
Exxon said that its principal gains in production came from
the Gulf of Mexico, Alaska, the North Sea, Malaysia and from
oil sands in Canada.
Exxon also said that it acquired 11.2 mln acres for
expoloration spread over 10 countries including the U.S, Europe
and the Far East.
But capital expenditures for exploration and production
were cut to 4.6 billion dlrs from 7.6 billion the previous year
and further reductions were expected in 1987.
Exxon said that its net share of crude oil and natural gas
liquids produced from offshore fields in the North Sea reached
a new high of 422,000 bpd.
The light, sweet crudes produced from these North Sea
fields also gave the company trading gains as Exxon was able to
sell much of this crude and replace it with cheaper, lower
quality crude oil for its refineries which have been upgraded
over the past several years.
The trading gains and lower acquisition costs gave Exxon
more of a spread in its refinery operations and added to
earnings gains from refining and marketing.
Exxon said earnings from refining and marketing operations
rose to nearly two billion dlrs in 1986, up from 872 mln dlrs
in 1985.
The company said petroleum sales slipped slightly to 4.043
mln barrels per day from 4.082 mln bpd in 1985 while crude runs
rose to 3.0 mln bpd from 2.9 mln bpd the previous year.
Exxon's refinery operations benefited from a three year 500
mln dlr upgrading program to its Baytown, Texas refinery
completed last October and an 850 mln dlr upgrading project in
Rotterdam both of which emphasize utilizing lower grade crudes
to extract higher proportions of light products.
| Other |
SOVIET UNION SEEN WATCHING CHINA GATT APPLICATION
| China's application to join the General
Agreement on Tariffs and Trade (GATT) is seen as a test case by
the Soviet Union, which will probably demand to follow China, a
top European Community official said.
Willy de Clercq, External Relations Commissioner of the
European Communities, told a news conference that China's
application would involve long and difficult negotiations.
China formally applied to join GATT in July 1986 and in
February presented a memorandum backing its application, which
De Clercq said was now being studied. Questions would then be
presented to China.
"After China, other important state-trading countries
including the Soviet Union, will probably demand accession.
China's application could be considered a test case," he said.
He said the EC strongly backed China's application, but
others among GATT's 92 contracting parties took a tougher line.
Among the numerous problems of a huge centrally-run economy
entering a free trade system are tariffs and reciprocity and
the expectation that China will practice an open-trade policy
without trade discrimination, de Clercq added.
De Clercq noted the different dimensions of the Chinese
economy and those of Hungary and Yugoslavia, the two current
Socialist GATT members.
On China's import potential, he said a foreign exchange
shortage would force China to import less this year and next
than in the past, with an emphasis on technological equipment
and capital.
During his visit, De Clercq has met top Chinese leaders and
today signed an agreement to open a European Community
Commission office in Peking.
| Other |
ROCKY MOUNT UNDERGARMENT <RMUC> 4TH QTR LOSS
| Shr loss 53 cts vs loss 32 cts
Net loss 1,548,000 vs loss 929,000
Revs 9,362,000 vs 11.3 mln
12 mths
Shr loss 82 cts vs profit 17 cts
Net loss 2,408,000 vs profit 452,000
Revs 40.9 mln vs 39.5 mln
NOTE: full name of company is Rocky Mount Undergarment Co
Inc.
| Corporate News |
U.S. COMMERCE SECRETARY SEES HIGHER GNP GROWTH
| Commerce Secretary Malcolm Baldrige
said a 0.7 pct rise in February's index of leading indicators
pointed to stronger economic growth in the first half of 1987.
In a statement commenting on the rise last month after a
0.5 pct January decline, Baldrige noted the leading index was
rising at an 8.0 pct annual rate in the six months to the end
of February.
"Based on past relationships, that gain is consistent with
stepped up growth in real GNP during the first half of 1987,"
Baldrige said.
| Corporate News |
U.S. SENATE LEADERS SEE NO TRADE WAR BREWING
| The Senate's Democratic and
Republican leaders praised President Reagan for retaliating
against Japan for violating a semiconducter accord but dashed
cold water on ideas it was the first shot in a trade war.
Senate Democratic Leader Robert Byrd and Republican leader
Bob Dole both told the Senate Reagan's decision was long
overdue and urged Japan to open its markets to U.S. goods and
stop dumping on world markets.
Each noted in separate speeches that they saw no trade war
over the issue, despite concerns in financial markets.
"That fear has no basis in fact," Byrd said.
| Corporate News |
DYR LIQUIDATING <DYR> SETS LIQUIDATING PAYOUT
| DYR Liquidating Corp,
formerly Dyneer Corp, said its board declared a third
liquidating dividend of one dlr per share payable to
shareholders of record on April 14 and said it will file a
certificate of dissolution on that date.
The company said shareholders of record on that date will
acquire beneficial interests in the liquidating trust that will
be formed to hold all of the company's assets.
It said it has asked the American Stock Exchange to suspend
trading in its common stock at the close on April 6 to ensure
settlement of all traded by April 14.
DYR said it expects its stock to be withdrawn from
registration under the Securities Exchange Act of 1934 shortly
after April 14.
DYR said the pay date for the dividend will be April 28.
| Corporate News |
NETWORK SECURITY CORP <NTWK> YEAR NET
| Shr 1.24 dlrs vs 19 cts
Shr diluted 1.11 dlrs vs 19 cts
Net 11.9 mln vs 1,830,000
Revs 79.3 mln vs 46.1 mln
NOTE: 1986 net includes pretax charge 8,300,000 dlrs from
increases and reserves and writeoffs of low-yielding assets and
pretax gain 20.8 mln dlrs from sale of Multi-Family subsidiary.
Another 3,800,000 dlrs of gain from the Multi-Family sale will
be recognized in 1987 if Multi-Family meets targeted operating
results.
| Commodities and Trade |
PEAT MARWICK, KMG MAIN HURDMAN TO COMPLETE MERGER
| Peat Marwick and KMG Main Hurdman said
their merger will be completed tomorrow.
The new firm, to be known as KPMG Peat Marwick, will rank
among the largest public account and consulting firms in the
U.S. based on combined 1986 revenues of 1.35 billion dlrs,
1,825 partners and a total staff of 16,500 in 136 offices.
KPMG was created as part of the merger announced last
September of Peat Marwick International Klynveld Main Goerdeler
to form Klynveld Peat Marwick Goerdeler.
| Market and Economy |
DUTCH MONEY MARKET DEBT EASES IN WEEK
| Loans and advances from the Dutch
Central Bank to the commercial banks fell 1.01 billion guilders
to 9.5 billion guilders in the week ending March 30, the Bank's
weekly return showed.
Dealers said payments by the Dutch state, partly in the
form of civil service wages, had outweighed payments to the
State, causing the money market deficit to ease.
The Treasury's account with the Bank dropped 960 mln
guilders to 6.5 billion guilders.
Liabilities in gold or foreign currency rose 200 mln to
11.9 billion guilders.
Dealers said it was more likely that the alteration in this
item on the weekly return indicated normal commercial foreign
exchange business rather than intervention by the Central Bank.
The Bank itself does not disclose information on
intervention.
Seasonal variation brought bank notes in circulation up 190
mln guilders to 29.7 billion guilders.
Total gold and currency reserves rose 173 mln guilders to
56.4 billion guilders.
Call money and period rates were barely changed in the
week. Today all were traded at 5-3/8 to 5-1/2 pct.
| Corporate News |
BORG-WARNER <BOR> EXAMINING GAF <GAF> PROPOSAL
| Borg-Warner Corp in a statement said it
has received GAF Corp's 46 dlrs a share acquisition proposal
and will have no comment until its board of directors has had a
chance to examine it thoroughly.
| Financial Reports |
NORTH AMERICAN BIOLOGICALS INC <NBIO> 4TH QTR
| Oper shr one ct vs three cts
Oper net 99,000 vs 327,000
Revs 12.1 mln vs 8,800,000
Avg shrs 15.5 mln vs 11.3 mln
Year
Oper shr six cts vs 11 cts
Oper net 841,000 vs 956,000
Revs 44.1 mln vs 34.4 mln
Avg shrs 15.3 mln vs 8,519,677
NOTE: Net excludes tax credits of 299,000 dlrs vs 29,00000
dlrs in quarter and 809,000 dlrs vs 71,000 dlrs in year.
| Corporate News |
CRI INSURED II <CII> ESTIMATES DIVIDENDS
| CRI Insured Mortgage Investments
II Inc said it expects to distribute about 1.55 to 1.65 dlrs
per share from operations for all of 1987 and about 1.68 to
1.75 dlrs including the proceeds of the gain from the sale of
the Brighton Meadows mortgage through January 31.
The company today paid a dividend of 1.1646 dlrs per share.
Its first two quarterly payments, in September and December,
were 42.5 cts each.
CRI said it has not yet declared a distribution on the Park
Meadows loan disposition.
| Corporate News |
LME LISTS BRAZILIAN ALUMINIUM BRAND
| The London Metal Exchange (LME) has
listed the aluminium brand "CBA' produced by Cia Brasileira de
Aluminio at its Mairinque, Sao Paulo, plant.
The brand will constitute good delivery from April 1, the
LME said.
| Market and Economy |
GUATEMALA TO HOST OTHER MILDS COFFEE MEETING
| Guatemala will host a meeting of other
milds coffee producers probably in May to discuss basic export
quotas, the Guatemalan delegate to the International Coffee
Organization, ICO, said.
No firm date has been set for the talks, Ambassador Rene
Montes told reporters at the ICO executive board meeting here.
Producer countries Brazil, Colombia, and a member of
OAMCAF, the African and Malagasy Coffee Organization, may also
be invited for consultation, he said.
ICO producers and consumers could not agree on how to
calculate export quota shares at a recent council meeting here.
Other milds coffee producers include Costa Rica, Dominican
Republic, Ecuador, El Salvador, Guatemala, Honduras, India,
Mexico, Nicaragua, Papua New Guinea, and Peru.
| Other |
AUDIO/VIDEO <AVA> TO GET EXPENSES FROM DIXONS
| Audio/Video Affiliates Inc said it
will receive an undisclosed amount from <Dixons Group PLC> in
connection with the termination of Cyacq Corp's 92.50 dlr per
share tender offer for Cyclops Corp <CYL>.
The company said the amount from Dixons is in lieu of
reimbursement expenses for the Cyacq tender. Citicorp <CCI>
was the other partner in Cyacq.
The payment was in connection with Dixons' previously
-announced agreement to increase its tender price for Cyclops
to 95.00 dlrs per share, Cycacq's ending of its competing bid
and the ending of litigation between the parties.
| Financial Reports |
REPUBLIC <RSLA> TO MERGE WITH PIONEER SAVINGS
| Republic Savings and Loan
Association and <Pioneer Savings> of Racine, Wis., said they
have signed a definitive agreement to combine the two
associations into a publicly held holding company to be called
Republic Capital Group Inc.
The associations said they would form the company by
exchanging Republic's stock for shares in the holding company,
which Pioneer savers could purchase when Pioneer converts from
mutual to stock ownership.
The associations added that they would remain independent,
but wholly owned, units of the holding company.
The associations said they would continue to do business
using their present names and management.
The combination of Republic's 459 mln dlrs in assets with
Pioneer's 125 mln dlrs would make the new holding company the
fifth largest savings and loan organization in Wisconsin, they
said.
The associations said the move is subject to approval by
the Federal Home Loan Bank Board and the Wisconsin Commissioner
of Savings and Loan, as well as Republic's shareholders and
Pioneer's depositors.
| Corporate News |
<NEW HARDING GROUP INC> 1ST QTR JAN 31 NET
| Shr 19 cts
Net 653,000
Revs 45.6 mln
Note: Prior results not given due to November, 1986
acquisition of 56 pct stake in Continuous Colour Coat Ltd
| Commodities and Trade |
BROUGHER <BIGI> TO SELL 40 PCT OF SUBSIDIARY
| Brougher Insurance Group Inc
said it plans to sell 40 pct of the stock of its subsidiary,
Intercontinental Corp, for one mln dlrs to three European
insurance companies.
The parent company said it signed a letter of intent to
sell the stock to <WASA Europeiska Forsakrings AB> of Sweden,
<Europeiske Reiseforsikring A/S> of Norway, and <Europeiska
Rejseforsikrings A/S> of Denmark.
Brougher said it expects to realize a net after-tax gain of
approximately 330,000 dlrs, or 12 cts per share, from issuing
stock of Intercontinental.
| Financial Reports |
CANADA INDUSTRY PRICES FALL 0.2 PCT IN MONTH
| The Canadian industrial product price
index, base 1981, fell 0.2 pct in February after rising 0.2 pct
in January, Statistics Canada said.
"A significant part of this monthly decrease was
attributable to the impact of the increase of the Canadian
dollar on prices for wood pulps, newspaper, aluminum, nickel
and motor vehicles," the federal agency said.
On a year-over-year basis, the index was down 0.8 pct,
little change from the 0.9 pct decline posted in January.
| Financial Reports |
OMNICOM GROUP INC <OMCM> 4TH QTR NET
| Shr profit 27 cts vs profit 51 cts
Net profit 6,600,000 vs profit 12,231,000
Revs 211.7 mln vs 193.4 mln
12 mths
Shr loss 17 cts vs profit 1.27 dlrs
Net loss 4,077,000 vs profit 30,142,000
Revs 753.5 mln vs 673.4 mln
NOTE: in qtr ended 1986 the company recognized expenses of
5,948,000 for restructing the combined operations of BBDO,
Doyle Dane Bernbach and Needham Harper Worldwide in August 1986
before tax gains. These relate primarily to the conosolidation
and elimination of duplicate facilities and staff.
for the year 1986, the provisions for mergers and
restructuring expenses brought non-recurring expenses to
40,292,000 before tax gains, of which 8,863,000 represented
merger costs and 31,429,000 related to restructuring of the
combine operations.
| Commodities and Trade |
KANSAS LEGISLATOR PREDICTS EEP WHEAT TO SOVIETS
| Rep. Pat Roberts, R-Kan., predicted
the Reagan administration within the next ten days to two weeks
will offer subsidized wheat to the Soviet Union under the
Export Enhancement Program, EEP.
Roberts made the comment at a press conference held by
Republican members of the House Agriculture Committee.
He did not say on what he based the comment, but an aide
said Roberts had been in touch with top Republican officials
recently.
The possibility of an expansion of EEP to include wheat to
Moscow has been rumored for some time, and some industry
sources believe a decision on the issue will be made by the
Reagan administration before Secretary of State George Shultz
goes to Moscow in April.
| Corporate News |
SUN CITY INDUSTRIES <SNI> SEES HIGHER NET
| Sun City Industries Inc said preliminary
unaudited results of ongoing operations for the fiscal year
ended January 31, 1987 are expected to rise over 580 pct to
700,000 dlrs or 70 cts per share from the 125,313 dlrs or 12
cts reported last year.
Total net income is expected to reach 2.4 mln dlrs, which
includes 1.7 mln dlrs of net income realized from sale of
property. The combination will result in record earnings of
2.40 dlrs a share, the wholesale distributor and processor of
eggs said.
| Corporate News |
YEUTTER SAYS STOCK MARKET OVERREACTED TO JAPAN TRADE DISPUTE
|
YEUTTER SAYS STOCK MARKET OVERREACTED TO JAPAN TRADE DISPUTE
| Financial Reports |
ST LAWRENCE SEAWAY OPENS SHIPPING SEASON
| The St Lawrence Seaway said the first
ship of the season passed through the St Lambert lock here this
morning, officially opening the 2,300-mile-long waterway's 1987
shipping season.
The seaway has said it expects little increase in freight
levels this year from last year when it moved 37.6 mln tonnes
of freight between Montreal and Lake Ontario and 41.6 mln
tonnes on the Welland Canal, which links Lake Erie and Lake
Ontario. The canal is scheduled to open tomorrow.
Officials expect the waterway to lose nine to ten mln
Canadian dlrs this year, about the same as the estimated
deficit for fiscal 1986-87, which ends today.
| Financial Reports |
ACTON <ATN> TO SELL UNIT FOR GAIN
| Acton Corp said it has agreed to
sell its five Michigan cable television systems to Wisconsin
Cablevision Inc for about 9,500,000 dlrs, resulting in a gain
of about six mln dlrs.
The company said the sale is subject to review by local
authorities. The systems have about 7,500 subscribers.
Acton said proceeds will be used to retire bank debt.
The company said it has also entered into a 15.5 mln dlr
bank credit agreement that will allow it to complete the
prepayment of all its obligations to members of its present
bank syndicate.
The company said the new credit will also allow it to
prepay some other debt and redeem its Class C Series Two
preferred stock.
It said the new facility has allowed it to take full
advantage of an early payment discount of about 13 mln dlrs in
principal and interest which was negotiated with its banking
syndicate in connection with an April 1986 financial
restructuring.
| Financial Reports |
BEGHIN-SAY SAYS SUGAR OFFER TO EC STILL STANDS
| A plan by European producers to sell
854,000 tonnes of sugar to European Community intervention
stocks still stands, Andrea Minguzzi, an official at French
sugar producer Beghin-Say, said.
Last week Beghin-Say president Jean-Marc Vernes said a
possible settlement of a row with the EC would lead producers
to withdraw their offer, which was made as a protest against EC
export licensing policies.
The EC policy is to offer export rebates, which fail to
give producers an equivalent price to that which they would get
by offering sugar into intervention stocks, Vernes said.
But Minguzzi said the offer was a commercial affair and
that producers had no intention of withdrawing the sugar offer
already lodged with intervention boards of different European
countries. He said final quality approval for all the sugar
offered could come later this week. Some 95 pct had already
cleared quality specifications.
The EC can only reject an offer to sell into intervention
stocks on quality grounds. Minguzzi added that under EC
regulations, the Community has until early May to pay for the
sugar. He declined to put an exact figure on the amount of
sugar offered by Beghin-Say, but said it was below 500,000
tonnes.
| Commodities and Trade |
EXXON <XON> GAINS DUE TO STREAMLINED OPERATIONS
| Exxon Corp said that 1986's 15 pct
increase in earnings per share to 7.42 dlrs a share were
partially based on its streamlined operations which compensated
for the weakness in its exploration earnings and the lowest
crude oil prices in a decade.
Exxon said economies introduced in its operations from
reductions in personnel and other savings, such as reductions
in exploration expenses, were reflected in an 880 mln dlr
reduction in consolidated operating costs from 1985.
The company said its more efficient operations would be
necessary to offset more adverse oil market conditions ahead.
The company also said that its share repurchase plan
contributed to the per share gains over 1985.
In a breakdown of costs, Exxon said that operating expenses
slipped to 9.2 billion dlrs in 1986 from 9.7 billion dlrs the
previous year and exploration expenses, including dry holes,
slipped back to 1.2 billion dlrs from 1.5 billion dlrs over the
same period as the number of wells drilled was lower.
The company was also able to use lower interest rates to
reduce its interest expenses to 614 mln dlrs in 1986 from 627
mln dlrs the previous year.
Exxon said that the ratio of debt to capital was cut by 1.6
pct in 1986 from the previous year to 19 pct.
On December 31, 1986 Exxon's total debt of 7.87 billion
dlrs was down slightly from the previous year's 7.9 billion
dlrs and long term debt stood at 4.3 billion dlrs, down from
4.8 billion dlrs in 1985.
Exxon's policy of repurchasing shares on the market for its
treasury also contributed to earnings results by a reduction of
shares to 722.6 mln shares from 754.1 mln shares the previous
year.
| Commodities and Trade |
U.S. STOCK MARKET OVERREACTS TO TARIFFS - YEUTTER
| U.S. Trade Representative Clayton
Yeutter said the stock market overreacted to a U.S. decision
last week to proceed with tariffs on some Japanese computer
products.
Speaking to reporters prior to testifying at a House
Agriculture Committee hearing, Yeutter said it is "difficult to
comprehend" that a trade decision affecting only 300 mln dlrs
in goods caused the stock market collapse yesterday.
"I have a hunch a lot of other things were involved in that
(stock market fall), including simple profit-taking," Yeutter
said.
Yeutter said Japan would be sending a senior official from
its trade ministry to Washington next week for talks on the
computer chip dispute.
"We will be glad to have him here, but that's not going to
affect a decision that's already been made," Yeutter said.
The decision announced last week would apply higher tariffs
on a range of Japanese products in retaliation for the alleged
failure of Tokyo to honor an agreement with the U.S. on
semiconductor trade.
| Financial Reports |
WEATHER HURTING YUGOSLAV WHEAT - USDA REPORT
| Unfavorable late winter weather
conditions in the main wheat growing areas of Yugoslavia
indicate dimmed prospects for the emerging winter wheat crop,
the U.S. embassy's agricultural officer in Belgrade said.
The officer, who travelled through an area from Belgrade to
Subotica, said in a field report dated March 27 the wheat crop
had been set back at least three weeks because of a cold spell
that followed a period of warm weather.
He said unseasonably warm weather in late February that
brought the wheat crop out of winter dormancy early was
followed by three weeks of unusually cold weather.
Damaging effects were seen in the fields, most of which
show stands with a yellow-brown cast indicating extensive leaf
and possible root damage from repeated freezings, he said.
The report said that since much of the early growth in
February was from late seeding rather than from normal
development, his view was that the damage may be more extensive
than some local observers say.
The most seriously affected fields were late-seeded fields
on normal maize soils. Stands in these fields were thin and
chances of recovery appeared less favorable, he said.
However, he said soil moisture conditions were favorable
and many of the fields had already been top-dressed, which
would aid recovery.
| Commodities and Trade |
USX <X>, CONSOLIDATED NATURAL <CNG> END TALKS
| USX Corp's Texas Oil and Gas Corp
subsidiary and Consolidated Natural Gas Co have mutually agreed
not to pursue further their talks on Consolidated's possible
purchase of Apollo Gas Co from Texas Oil.
No details were given.
| Financial Reports |
ARVIN INDUSTRIES SEES FLAT 1ST QTR PER SHARE NET COMPARED WITH 59 CTS LAST YEAR
|
ARVIN INDUSTRIES SEES FLAT 1ST QTR PER SHARE NET COMPARED WITH 59 CTS LAST YEAR
| Financial Reports |
ROCKY MOUNT <RMUC> EXPECTS PROFIT IN FIRST QTR
| Hal Weiss, chairman,
president and chief executive officer, of Rocky Mount
Undergarment Co Inc, said he expects the company to show a
profit for the first quarter fiscal 1987.
Weiss said sales for 1987 have been strong following a net
loss of 1,548,000 dlrs, or 53 cts a share, for the fourth
quarter of fiscal 1986. The company reported a net loss for the
year of 2,408,000 dlrs, or 82 cts a share.
Rocky Mount recorded net income of 248,000 dlrs, or eight
cts per share, for the first quarter of fiscal 1986.
Weiss attributed the poor year to problems involving
management, manufacturing operations, financial condition and
credibility among its suppliers.
Weiss predicted the pattern of quarterly lossses which
characterized 1986 will be reversed and 1987 will see the
company return to profitability.
| Corporate News |